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Bitcoin falls from $52000 to $47000 in 6 hours, as El Salvador adopts it as legal tender, others follow
Bitcoin prices today were trading with gains at $52,534.39, up 1.5% after El Salvador on Tuesday becomes the first country in the world to accept bitcoin as legal tender.
Bitcoin prices today was trading with gains at $52,534.39, up 1.5% after El Salvador on Tuesday becomes the first country in the world to accept bitcoin as legal tender.
BREAKING: President @nayibbukele just announced that El Salvador has officially bought their first 200 bitcoin.
This is the first known nation state to purchase bitcoin.
— Pomp ? (@APompliano) September 6, 2021
President Nayib Bukele, who pushed for the adoption of the cryptocurrency, called for help from users who had already downloaded the government-backed app, to test if it was now working properly.
“Could you please try to register and post in the comments if there are any errors or if the whole process works fine?” the president wrote on Twitter.
Bukele said using bitcoin will help Salvadorans save $400 million a year on commissions for remittances while giving access to financial services to those with no bank account.
However, this afternoon Bitcoin falls to $47, 000, a dip that most retail traders may lose much from, as nobody was expecting the sudden falls.
The price action comes on the day El Salvador is set to adopt the largest cryptocurrency by market cap as legal tender, becoming the first country to do so.
Bitcoin dropped as much as 16% on Tuesday. According to Coin Metrics, it was last down by about 8.5% and trading at $47,400.00.
El Salvador bought 400 bitcoins ahead of the roll-out, with a market value of about $20 million at current prices. The country plans to buy “a lot more” of them, President Nayib Bukele said via Twitter, after buying the first batch of 200.
Meanwhile, crypto adjacent stocks MicroStrategy and Coinbase also fell about 6.5% and 3%, respectively. Coinbase users are experiencing delayed or cancelled transactions at “elevated rates,” the crypto exchange said in an update on Twitter in the late morning.
Major crypto exchanges Kraken and Gemini were investigating delays and performance issues around the same time.